Life insurance is an important and integral part of comprehensive and sound financial planning. A life insurance policy is a legal contract between you and the life insurance company.  While price is an important consideration, the terms and conditions of the contract are of utmost importance.

In simple terms, you agree to pay money in regular installments (the "premium") and the insurance company (subject to the terms, conditions, limitations and exclusions of the contract) agrees to pay a sum or sums of money if you die and/or if certain other event(s) or actions or situations occur while the policy is in force as set out and defined in the contract. Just like any other contract, life insurance contracts have terms, conditions, limitations and exclusions. Some life insurance contracts are relatively 'simple' whereas others are highly complex legal-financial documents.

Tip: Make sure that you understand the policy, its terms, conditions, limitations and exclusions before you accept the policy. Any ambiguity should be clarified in writing.  Remember, if a policy 'type' appears to be 'simple', that doen't necessarily mean that the contract wording is simple. 

Caution for Internet Term Insurance Shoppers:

The Internet is a wonderful resource of archived information.  Used properly and with the understanding of its limitations, the Internet can be a valuable added research resouce.  The Internet is also an inexpensive and easily available advertising resource.  Since about 1995, numerous term insuranced sales and sales lead solicitation websites have sprung up - and new ones are sprouting daily.  As a general rule, the fewer qualification questions that are asked the less reliable are the quotations and illustrations presented to you.   The following are a few tips that you may wish to consider:

A.  Unless you wish to receive sales solicitations, avoid giving your name and contact information at Internet term insurance sites.

B.  Don't assume that any site surveys or compares virtually all the companies or options.  If you use the Internet to research insurance costs, don't limit yourself to one site; visit at least three.  Then, equipped with any knowledge that you may acquire, contact your trusted insurance and/or financial advisor for professional advice.

C.  Keep in mind that the fewer qualification related questions that are asked at the web site, the less reliable the quotations and comparisons at the site will be.   Also keep in mind that a company that appears very competitive for "ultra preferred" or "preferred plus" rates may not be as competitive with their other alternatives if you do not qualify under the "ultra preferred" or "preferred plus" acceptance rules.

D.  If you are considering term insurance, insist of full and detailed disclosure of guaranteed renewal costs and conversion options, if any.

E.  DON'T cancel any exisiting life insurance just because you see what appears to be a lower cost advertised on the Internet.  If you choose to go with what appears to be a lower cost option, get the agent to complete a detailed comparison of your existing coverage and the proposed new coverage, have the agent complete the application fully, wait until the policy is issued AND delivered to you, and read the policy carefully before making yourl decision.  Remember (and confirm with the agent) that in most cases you can return a new policy for cancellation and a full refund within 10 days after its delivery to you by the agent.

F.  Seek independent advice by a local, trusted, insurance professional BEFORE making any decision to purchase life insureance over the Internet and ask the agent to supply you with a current LifeGuide market survey of options.

Tip: If you consider purchasing life insurance over the Internet, request a copy of the illustration and of the policy contract wording before you sign.  Then, make sure that you read and understand the policy, its terms, conditions, limitations and exclusions. Any ambiguity should be clarified in writing.

Trap: "No agent" Mail order and "No Agent", Internet-sold life insurance

Tip: The slick sales pitches of  "no-agent", mail order and "no commissioned agent - buy over the Internet" life insurance ads are best to ignore.

The insurance peddled by these canned sales pitches may turn out to be more expensive than competitive insurance normally available on the market.  {Note:  This is most likely one of the reason that such sales operations sometimes refuse to provide information to have their claims - and their rates - compared independently with the offerings of their competitors.}

Check the term and life insurance market pricing and trends at http://www.winquote.net or http://www.term.ca or http://www.consumerterm.com. These consumer information sites are maintained for your benefit as a consumer, to provide you with access to unbiased, comprehensive and objective independent resource.  After examining your options at http://www.winquote.net or http://www.term.ca or http://www.consumerterm.com, seek the advice and assistance of a qualified professional life insurance agent, broker or financial planner to help you assess your needs and to choose the life insurance contract that best suits your requirements and your budget.  Each of the sites provides you with a search engine and massive database of thousands of qualified, duly licensed and properly equipped insurance and financial planning professionals - including names and telephone numbers.  Most likely you'll end up paying less than for "mail order" or "internet order" insurance AND you receive knowledgeable personal advice and attention.  Why pay more to get less?

It is also important to remember that the application forms a part of the life insurance contract. An error on the application could void your contract and could result in no coverage at all.   Meet with the agent face to face and ask questions.  A good and knowledgeable agent will be happy to respond and explain the coverage.  Don't take "don't worry" for an answer.   You, as a consumer, have a right to clear and full disclosure!   Don't gamble with mail-order or Internet-order term or other insurance.

Trap: Signing a life insurance application before carefully reading and reviewing each question and answer

Tip: Never sign before you carefully read the application or unless you agree with all entries made thereon.

Remember, the application forms part of the contract.  Check to make sure that the application is fully and properly completed. "If in doubt check it out!" Don't be shy of asking questions and don't be shy to elaborate on your answers to the application questions. A professional and knowledgeable life insurance agent, broker or financial planner will be more than happy to explain each and every item to you. Don't take a comment such as "it's not important" as an answer. Every item on the application is important and may affect your coverage.

A fully and properly completed application will expedite issuance of the policy and will reduce the potential of difficulties later on.

Be particularly careful about "clicking" a "signature" for life or term insurance on the Internet.
Before "clicking":
a.  Is the entirety of the completed application displayed to you on-screen when you are asked to click?
b.  Are you certain that you fully understand each question and that the questions are clear and unambiguous?
c.  (If there is "fine print") Did you read and fully understand the entirety of the fine print?
d.  Have you received independent advice and compared against available options with an insurance broker/agent or financial planner or through an independent consumer information site?
e.  Have you printed off a complete copy of the application form?
f.  Are you sufficiently confident about the security of your private information when it is transmitted over the World Wide Web?

If the answers to any of the above questions is "no" or "not sure", you may be better off to hold off and to consult with an independent advisor before proceeding further.

Addendum re Internet insurance applications:  Guard your privacy!
There are two "types" of life insurance "application" forms pushed at consumers over the Internet.  The first are 'real' applications by insurance companies that are "web enabled".  The second type - and the type to be viewed with skepticism - are not real insurance company approved application forms but are intended for the collection of private consumer information by the site operators.  The collected private information is then sometimes sold by the "sales-lead" site operators to third parties.  Regretfully, this second type is sometimes pushed at consumers and misread as if it was a legitimate insurance company authorized application.

Tip:
If you are considering the completion of what is presented to you as an electronic life insurance application but have even the slightest doubt that it is a legitimate, insurance company authorized insurance application form, it is best not to take any chances with your right to privacy.  It is also worthwhile to keep in mind that "sales lead" solicitation site operators and "data-mining" web-sites may fall outside the jurisdiction of insurance and financial service regulators.

Trap: Replacing your existing life insurance contract without very careful examination of available alternatives. The following are some of the reasons why replacing an existing life insurance contract may not be to your benefit.  Replacement of existing life insurance without extra care and attention may be dangerous to your wealth. 

• Contract arrangement costs (known as acquisition costs) have already been paid by you for the existing contract. By replacing the contract, you may be paying for these acquisition costs again. Acquisition costs include but are not limited to:
• Advertising and Commissions
• Medical examination fees
• Underwriting costs
• Administration costs
• The cost of insurance portion of the premium for life insurance is dependent on the age at which you purchase the life insurance contract. Since the existing contract was likely purchased at a younger age, it is very likely that you will be paying more for a new contract having the same or similar benefits.
• Most life insurance contracts contain clauses which may lead to denial of payment (denial of claim) by the insurance company during the early years of the term of the contract. The two most common exclusions, normally applied during the first two years of the contract, are the suicide and incontestability clauses. These clauses may have already expired in your existing contract (this is to your benefit) while in the replacement contract these clauses may be in force again (certainly not to your benefit).
• (Canada) Replacement of a contract of life insurance which was acquired prior to December 2, 1982 (or in the case of corporate insurance, June 29, 1982) may cause the loss of valuable tax advantages.
• Since your health may have changed, your insurability (acceptability to the insurance company) may be adversely affected. A replacing contract may therefore be more costly and may contain additional contractual restrictions and/or limitations.

Tip: If someone suggests that you replace your existing insurance, take the following common-sense financial self defense steps:

• 1. Before agreeing to complete an application for a replacement policy, demand  to receive a fully completed and signed "Basic Disclosure Statement Regarding Replacement of Contracts of Life Insurance" for each of the policies considered for replacement and do not terminate the existing policy.  It is your right to receive full disclosure before being asked to sign an application for "new" insurance.  Also, make sure to insist on a copy of the sample contract wording for the proposed "new" policy!
• 2. If the replacement is recommended by someone because your needs have changed, consult with the existing insurer ( the insurance company who you have the existing insurance policy with) to see whether the existing contract could be amended to suit your current needs. (You may be able to avoid some or all of the costs and traps associated with replacement)
• 3. Get at least one other opinion from an independent life insurance or financial planning professional.

Trap: Replacing existing individual life insurance with creditor group life insurance.
The sellers of group creditor insurance normally refer to such life insurance as "Mortgage Insurance", "Credit Card Balance Insurance", "Loan Balance Insurance" etc.

Tip: Don't do it!

In addition to the other hazards involved with replacing of life insurance contracts (see above), the following hazards, risks and uncertainties are added when individual life insurance is replaced with group creditor insurance:

• Group creditor insurance coverage often decreases as you pay off the loan or mortgage but the premiums you have to pay often remain the same or even increase over time.
• Normally you cannot continue with the same group insurance if you decide to re-finance the mortgage or the loan with another lender. If your health or other factors affecting insurability change, it may not be as easy to shop the market for the best loan rate and to keep the insurance.
• If your health or insurability deteriorates, you run the risk of your lender getting this information and this, in turn, may affect your ability to renew or continue with the loan itself.
• With group creditor insurance, the creditor is almost always the beneficiary.
• If the policy expires before you do...they profit
• If you expire while the policy is still in force...they are usually the beneficiary.
• You will rarely, if ever, get a fair opportunity to fully examine the policy contract. (Normally all you receive is a single 'certificate' which is subject to the Master Policy which, of course, you don't normally get)
• You have less regulatory protection since the regulators rarely, if ever, require that the creditor complete a comparison disclosure form when they replace individual insurance with their group creditor insurance.
• You have far less control and the group creditor life insurance may be canceled with little or no notice to you.

Trap: Snappy, so called "needs analysis"
Snappy, so called "needs analysis" that are short on substance but long on the gab can be  next to worthless.  Often, these 'quickies' are merely part of the sales pitch.  A proper needs analysis is detailed and takes into account your existing insurance, your existing financial resources and assets, government benefits, your income needs, your tax liabilities, other liabilities etc.  Beware of so called "analysis" that fails to take inventory of your existing coverage and existing liquid cash resources.  Also see the above caution with respect to replacing existing coverage

In a proper needs analysis, details are shown clearly in an easy to follow and understand format.   A proper insurance needs analysis also provides for adequate reserving for unforeseen expenses and liabilities. The preparation of a full, fair and proper needs analysis requires the right tools, such as those provide on LifeGuide or on other professional financial planning software.  Proper insurance needs analysis may also require the knowledge and expertise of a qualified life insurance agent, broker or financial planner.

Tip: Avoid the risks of quick n' snappy so called 'needs analysis'.

 Trap:  Sweeping statements and so called 'advice' by self-serving "experts"...
such as "Replace your life insurance every 10 years", "Consider convertible policies only if you are in bad health", etc. are outright dangerous.   "Always buy term" is as wrong as "Always buy cash-value policies" and is as wrong as "Universal life is the universal solution". Sweeping statements and generalizations like these are a sign of lack of knowledge or lack of care or both.

Tip:  Avoid falling into these traps. Check the relevant professional qualifications of self-appointed "experts"; often they have none!  Just because they have good writing skills or have managed to get articles into print doesn't mean or even indicate that they are insurance or financial "experts".  Consult with a qualified life insurance professional or financial planner who will review your individual needs and make recommendations based on your individual financial requirements and resources.

Trap: Life insurance market comparison 'surveys' based solely and only on 'Initial Term Premium rates'
Would you base your decision to purchase a home or a car only on the down payment amount?  Not likely. Shopping for life insurance merely and only on the basis of 'initial' premiums is analogous to shopping for a car or house merely and only on the basis of the 'initial' down payment.

Initial premium only comparison 'surveys' for life insurance are lacking and can lead to very costly serious consequences. In contrast to automobile and home insurance policies which are normally short term (usually 1 year policies with no guarantee of future renewal rates or benefits), life insurance contracts are normally purchased for the long term. Life insurance contracts normally contain guarantees of renewal rates and future benefits which also need to be taken into account.  For term insurance comparisons, check for premium amounts and guarantees for the duration of the initial level  premium period as well as for renewals beyond the initial level premium period.

Tip:  If you are price comparing on the Internet, choose sites that disclose renewal costs and that also provide disclosure of the final expiry year (the year beyond which the policy cannot be renewed).  When speaking to a representative, demand a comprehensive survey of policies offered by different insurance companies which takes into account the cost and net cost.

Tip:  If you are price comparing on the Internet, check on at least three sites.  Choose sites where your comparison is not limited to only one mode of premium payment.  For example, if you cannot afford to pay the quoted premiums annually, don't assume that the monthly cost will be 1/12 of the annual but check on the monthly costs instead.  If the site is limited and restricted only to one premium payment mode "comparisons" go to a site that will disclose all four premium payment modes (Annual, Semi-Annual, Quarterly and Monthly).

Trap: Artificial, overly optimistic projections of values for dividends on 'participating' policies

This trap is similar to the trap set by artificial, undisclosed, elimination of policies or companies from a computerized 'survey'. The trap is set to make you believe that dividend results will be higher than the average long-term performance. Due to the power of compounding, this trap could cost you thousands of dollars.

Tip: If the survey involves illustrations of 'participating' policies (policies offering 'dividends'), please remember that 'dividends' are projections and not guarantees of future results or performance.

Demand a written disclosure of long-term past performance and of present performance. Also demand a full disclosure of the projections and projection rates used on the illustration.

Trap: "Premium Offset" illustrations which promise a "quick-pay" arrangement where the policy will be "paid-up" early using "policy dividends".

Tip: Remember, life insurance policy 'dividends' are usually NOT GUARANTEED!!!

Unless the company is prepared to provide you with a written guarantee of a minimum level of dividends, it is best to make very conservative assumptions of very low dividends or no dividends at all.

Trap: Artificial, overly optimistic projections and assumptions of fund growth in 'Universal life" policies

This trap is vicious and can lead to significant, unplanned, additional costs.

'Universal Life' policy contracts are meant to combine the advantages of term insurance with the advantages of favourable tax law and regulations and with the advantages of choice of investment options.  'Universal Life' policy contracts can also be an effective and powerful estate planning vehicle.  On the other hand, non-guaranteed investment options that may be offered could (unless otherwise guaranteed in the contract wording) create losses rather than gains.

Tip:  Ignore overly optimistic projections and return on investment assumptions that sound too good to be true!!!  Deal with independent agents/brokers who have the knowledge and experience and who are properly equipped to independently compare the various Universal Life offerings on the market.  When purchasing a 'Universal life' policy or any other type of policy, demand full disclosure of the terms and conditions of the policy contract.

Trap: Purchasing a life insurance policy as an RRSP or tax shelter without comprehensive tax and financial planning.

This trap, while possibly a short-term gain, may turn into a costly, long-term pain.

Tip: Never purchase a life insurance policy as an RRSP or as a tax shelter without extensive consultations with qualified life insurance, financial and tax planning professionals.

Always seek professional advice if you are considering registering a life insurance policy as an RRSP or using a life insurance policy as a 'tax shelter'. There are many potential pitfalls, especially with registering a life insurance policy as an RRSP and there are often much better alternatives available. A good strategy to reduce the chance of hasty and costly mistakes is to avoid registering a life insurance policy as an RRSP during the annual RRSP "Hype-Season" (During the months of January and February).

Trap:  Shiny glossy sales brochures, 'get rich quick' schemes, slick 'retire early' commercials etc.

Tip: Remember the 'golden rule': "If it sounds too good to be true then it likely isn't true".

Anyone with a few dollars or the ability to borrow a few dollars can have shiny, glossy brochures printed. Don't be blinded by the shine!. 'Get rich quick' schemes and slick 'early retirement' commercials are best to ignore. Sound financial planning requires careful consideration of needs, resources and alternatives. Impulsive financial decisions, regardless of how motivated, are the antithesis to sound and effective financial planning. Seek the advise and service of qualified life insurance and financial planning professionals and ignore fancy sales brochures, get-rich-quick schemes and slick 'retire early' commercials.

Trap:  Sweeping, generalized claims such as "Our premiums are the lowest" or "We beat our competitors by 20%, 50%, 70% or more"

Tip:  Be skeptical of such claims.

Thousands of independent life insurance and financial planning professionals are equipped with the LifeGuide Professional software.  Ask an independent professional equipped with LifeGuide to check.  If they really have the lowest premiums, it's likely that they have made every effort to have their policies and premiums listed on the LifeGuide software - it would be to their advantage to do so.  If they have not taken advantage of the opportunity, ask yourself "why"?

Trap:  Not understanding your policy fully

Tip:  Read your policy and review your policy and policy annual statements at least once a year.

Life insurance policies, like other insurance policies, are legal contracts.  These contracts are drawn up by lawyers - not your lawyers but the lawyers of the insurance company.  Some contracts are easier to read than others but all require proper and good understanding.  The following is a short-list of some of the items that must be clear (Note: This is not an exhaustive list but merely a list of some of the more obvious key items):

For all policies:
-Are the premiums guaranteed?
-Is the coverage amount guaranteed?
-Is the policy "subject to" the clauses of another legal document such as a "master group policy" (If that's the case, have you read and understood the "master policy"?)
-Is the policy cancelable by the insurance company?
-Have you been supplied with a copy of the application upon which the policy is issued and is all the information in the application true and complete?

-Is there anything 'missing' on the application?  Were all questions fully and accurately answered and the answers fully and accurately noted?
-Is all the personal information in the policy, including spelling, age, etc. correct?
-Is the beneficiary correctly noted and as per your instructions?

For "term" policies:
-Is the coverage renewable?  If yes, what is the maximum guaranteed renewability period?
-What are the renewal rates, how soon will the policy premiums increase and how much will the increase be?
-After the initial premium period is over, how often will renewal premiums increase?
-If the policy is "convertible":
    -What named policy is it convertible to
    -Does the company currently offer a conversion policy?
    -Can you convert immediately if you needed to?
    -When will the policy no longer be convertible?
    -Does the company publish the premiums for its conversion policy?
    -Does the company offer a range of choice for conversion?

Caution:  Renewability and convertibility are important features in term insurance.  However, not all term insurance is renewable and not all term insurance is convertible.  In some instances, the "conversion" policies may be much higher priced.  If you can't absolutely predict what your health and life insurance needs will be 10 or 20 years from now, don't gamble with these important features.

For "permanent" policies:
-Will the coverage remain fixed or is it periodically "adjustable" by the insurance company?
-Are future insurance premiums guaranteed or are these "adjustable" by the insurance company?
-Are all benefits in the sales illustration fully and clearly included in the policy?
-What are the "administration" and/or "management" charges?
-(On annual review):  Are policy values (cash values (and fund values in Universal Life Policies)) at least as much as shown on an original sales illustration?
-Does the status of the policy indicate any potential tax ramifications?
 

Additional Tips and General Information

1. There are significant cost differences among life insurance companies for the same type and amount of coverage. No one company is either always best or always worst. It is always wise to check the offerings of various life insurance companies.

To 'check out the market', you can interview a large number of agents, each showing you their company's proposal. Two significant difficulties with this method are:
a. Who is prepared to endure dozens of hours of sales talk?
b. You need to have extensive knowledge of life insurance or you may end up 'comparing apples and oranges'.

Consult with a licensed, experienced and qualified life insurance and financial planning professional and request a personalized LifeGuide comparison research report.

2. 'Ratings':  These are neither a promise nor a warranty - nor a reliable indicator - of an insurance company's long-term stability, claims paying ability or solvency.  If the agent claims that they are have him/her sign a personal guarantee. 

If you are presented with 'ratings' during the sales or presentation process - such as to recommend one company over another on the basis of 'ratings', ask the presenter to provide you with a full, written and detailed explanation of the methodology used to produce and establish the rating (including the dataset), the date of the data (not the date of the rating but that of the underlying data) that was used to establish the rating AND the disclaimer of the rating agency.  Do NOT rely merely on a letter or number symbols unless the sales representative is prepared to sign an undertaking that (s)he guarantees the validity and your understanding of the meaning of the letter or number ratings.  ...at least this way, when and if there is a problem with the reliability of the 'ratings' as presented, you may be able to consider litigation against the presenter's Errors and Omissions insurance.

If a sales person suggests that the rating predicts the stability, claims paying ability or solvency of an insurance company, demand that (s)he puts her/his guarantee of his suggestions in writing.  This way, you may possibly have some recourse in the event that the suggestion is inaccurate.

3. The size of an insurance company is not an assurance of long term financial strength of longevity.

The demise of Confederation Life, one of Canada's largest and oldest companies is a good example. Actually, two of the total of three Canadian companies that failed since 1990, Confederation Life and Sovereign Life, were among the 20 largest Canadian life insurance companies in 1985. Of the numerous smaller companies active at the time, only one has failed. It is therefore quite obvious that size is no indication of financial strength or stability. The only difference is that big companies make a bigger splash when they fall.

4. If you are concerned or believe that you have reason for concern about the long term financial strength or claim paying ability of insurance companies:

Nothing, perhaps other than death and taxes, is absolutely certain.  If you are concerned or have reason to believe that there may be reason for concern about the long-term financial strength or claims paying abilities of insurance companies, then spread the risk and split up your insurance coverage among several insurance companies.  In essence, splitting up your coverage among several insurance companies uses the same principle, "spread the risk", that insurance companies employ.  On the other hand, the added security from spreading the risk among several insurance companies will slightly increase your total cost for the coverage.

5.   Avoid - or at least limit - exposure to the financial risk of critical illness

An unplanned critical illness (are there any that are planned?) can instantly destroy an otherwise sound and well designed financial and security portfolio.  A recent comprehensive study in the US has revealed that critical illness is the trigger for nearly 50% of all personal bankruptcies.  The very last thing that a person needs in time of a critical illness crisis is the stress of a financial crisis.  Numerous studies indicate that psychological stress is one of the major risk factors for heart attacks and other serious ailments.  Fortunately, a prominent heart surgeon invented a relatively new but important form of insurance - Critical Illness insurance.  Most leading insurance companies in Canada offer this coverage.  If your life insurance agent hasn't offered Critical Illness insurance coverage to you, find another local agent and get yourself covered.  If anyone recommended against critical illness insurance when you could have qualified for the coverage, keep the evidence; it could come in useful for your lawyer in the event that you suffer a critical illness that would have been insured had you not been misinformed.

6.   When you purchase a life insurance policy:

• At time of application:
• Read the application very carefully and make sure that you fully understand each and every question and each and every response made.
• Make sure that each and every question has been answered correctly and fully
• Don't accept "this can be completed later"
• If the new application is intended to replace an existing insurance contract, make sure that this is noted on the application and make sure that you receive a fully completed comparison disclosure form and a full sample contract for the proposed new insuranced before completing the new application. Stating that the new application will cancel an existing contract does not mean that you are obligated to cancel the existing contract, nor does it cancel the existing contract. In fact, even if you are sure that you want to cancel the existing contract, you should NEVER cancel it before the new, replacing contract, is received and is fully satisfactory. (See above notes about the Traps in replacement)
• It is preferable to pay for life insurance premiums by cheque or money order always made payable to the insurance company. Avoid paying by cash.
• Retain with you all sales material, illustrations, computer print-outs, etc. which were used in presenting the policy. You will need these for comparison with the policy contract itself.

• When you receive the policy contract:
• Note carefully the date on which you receive your new policy. If the policy is unsatisfactory, you normally have 10 days from the date on which you receive it to return it for a full refund.
• Check the policy document very carefully and immediately upon receipt to at least:
• Make sure that it is complete, that a copy of your original application is included and that no pages are missing.
• That the stipulated premiums are those to which you agreed
• That the benefits are those for which you applied and that there are no exclusions of which you were previously unaware.
• If the policy features cash values or paid up values, check to make sure that these are the same as were illustrated.
• That any additional guarantees which were on the sales illustration are not missing from the policy contract.
• Read the policy document thoroughly. It is a legal contract. Make certain that you understand the terms, conditions, limitations and exclusions.
• Ask questions and make inquiries regarding anything that you are not sure of or cannot understand in the contract.
• Don't accept delays in receiving satisfactory answers to any questions that you have. Remember, you only have 10 days.

If you choose not to accept the new policy:

• Make sure that by returning it you don't leave yourself without necessary coverage
• Make sure that you either have the agent pick it up and provide you with a current dated receipt or that you forward the policy to the insurance company thorough other means which provide you with proof of return of the policy and of the date on which it was returned.

If you choose to accept the new policy:

• Arrange with your agent, broker or financial planner to review the policy and your financial plan periodically.
• Keep the policy contract in a secure place (but don't keep life insurance policies in bank safety deposit boxes).
• Advise your family or estate executor of the location of the policy contract.